How is QNET different from a Pyramid Scheme?

Most of us are aware of the dangers of falling into a pyramid scheme. We might have heard about the dangers from our friends, family or others or even would have had a brush with what it really is. Not only has pyramid schemes ruined lives around the world, but it has also put a black mark and an air of doubt over reputed and legitimate companies like QNET India.

It is time to put a stop to pyramid schemes and correct the misconceptions that it has cast over legitimate direct selling networking marketing companies like QNET in India.

What is a pyramid scheme?

In a pyramid scheme, members are asked to get more and more recruits into their network with a promise of commissions or bonuses based on the number of people that they bring under them. Unlike a conventional direct marketing company in India, where the distributor is given a commission for the number of products that he or she sells, the main objective of a pyramid scheme is to introduce more members into the scheme.

Pyramid schemes are also different from normal Ponzi schemes in the way that in the latter, initial investors are paid a part of the money collected from newer investors as their initial investment.

Charles Ponzi, the brain behind the Ponzi scheme.
Charles Ponzi, the brain behind the Ponzi scheme.

Both pyramid and Ponzi schemes have one thing in common. They are both destined to fail as the investment begins to run dry after a while. As time passes and the levels of investors increase, it becomes harder to keep up the inflow of cash and the scheme ultimately fails. This means that the people who joined the scheme in the beginning manage to get back a bit of their money, but the latest recruits are left with nothing.

A simple mathematical calculation will easily explain to you why any and every pyramid scheme is destined to fail. As it follows an exponential rate of growth in the number of investors per level, if every recruit were to introduce 6 more new recruits under them, the world’s population would run out after the 13th level. As finding newer recruits become harder after every level, the system fails and the people in the bottom levels are left without their initial investment.

How to recognise a pyramid scheme?

The people who run pyramid schemes are pretty smart when it comes to hiding the true nature of their business. This makes it hard to figure out if the business that you are joining is a pyramid scheme or a legitimate direct selling business like QNET. However, it is not impossible.

One of the tell-tale signs that you are interacting with a pyramid scheme and not a legitimate direct selling business in India is based on their remuneration policy. If you are more incentivized to get more people under you than through the sale of products or services, there is a high chance that you are being targeted by a direct selling company. The objective of a good direct selling company like QNET is to sell their products directly to customers. You should also be cautious if you are asked to pay a joining fee or monthly membership fees.

You should also be wary if they keep emphasizing how it is a once in a lifetime opportunity or a limited-time one. Any promise of life-altering sums of money should be viewed with caution.

What makes QNET better than most other direct selling companies?

The objective of QNET is to bring top-class products to their customers, via distributors, for a reduced price. You make the bulk of your money from QNET by selling your product. While there are incentives to bring more people under you, it does not take centre stage like in a pyramid scheme. QNET India also strictly adheres to rules and regulations put forward by the government of India. It also has dedicated rules that are conveyed to its independent representatives to prevent any illegal activity from them. It also has one of the best and most robust return policy of all direct selling companies in the country.

QNET India has helped thousands of people to attain financial independence and to be their own boss. It is a sad truth that companies like QNET are being targeted by others in an attempt to ruin their name and brand. Comparing it to an illegal pyramid scheme is one of the worst ways that individuals have tried to attack it. By being a smart customer and even smarter entrepreneur, you can escape the evil that is pyramid schemes.

Read More: Busting QNET Myths!

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